What Are The Closing Costs For An FHA Loan in Santa Monica?

When considering purchasing a home in Santa Monica with an FHA loan you need to factor in your down payment and closing costs. Some buyers think that all they have to prepare for is the 3.5% for the down but are surprised that they have to pay closing costs too.

Read on to learn more about the costs associated with a Santa Monica FHA loan with Nuline Funding.

What are FHA closing costs?

All mortgage loans have closing costs and an FHA loan is no exception. Closing costs include any origination fees, upfront mortgage insurance premiums, and other prepaid items.

When you apply for a loan, you’ll receive a closing costs estimate, and 3 days before closing the loan you’ll get a closing disclosure where all fees are totaled and broken down for you. 

If you think that an FHA loan in Santa Monica is the best option for you. Get in touch with one of our Nuline loan officers for a free consultation.

How much do I pay for FHA closing costs?

There is no fixed amount on how you’ll pay for your FHA loan closing costs. It would depend on the size of your loan as the origination fee is calculated as a percentage. 

Let’s say your loan is $200,000 with a 1% origination fee. That means you’ll pay $2,000 as part of your closing costs.

Other costs include the fees paid to other companies involved in the loan application process, such as the appraisal, title services, flood zone certification, and more.

It’s safe to prepare a budget between 2% to 6% of the loan amount to make sure that you won’t lack the funds when paying for closing costs. This means that for a $200,000 loan you need around $4,000 to $12,000 in closing costs.

Getting Ready To Buy Property In Santa Monica

As with any other loan type, FHA loans come with closing costs and they are usually between 2% to 6% of your loan amount.

If you can’t afford to pay them outright, you may have the option to ask the seller to cover part of them. Sellers are allowed to pay a buyer's closing costs of up to 6% of the sale price.

If closing costs with your FHA loan are giving you a problem, our loan officers at Nuline Funding of Santa Monica can help you out. 

 


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.